Stories

Wed, 29 Jul 2026

Wed, 29 Jul 2026 Data centres could pay hundreds of millions in deposits for power demands

The regulator said a fee of between £237,500 to £712,500 per megawatt should be charged for upcoming projects.

* Ofgem proposes a refundable fee for data centre developers to pay upfront, ranging from £237,500 to £712,500 per megawatt.
* The fee would be paid back if the project is completed, and aims to tackle "speculative projects" that secure network capacity without firm intention to connect.
* 564 data centres are currently listed in the UK, with Scotland seen as a good location due to its supply of renewable energy.
* Demand for grid connections has increased sharply, from 41 GW to 125 GW in the past year, exceeding Britain's peak electricity demand of around 46 GW in 2025.
* Ofgem's proposal aims to tackle speculative projects that are taking up space in the system and causing risks for consumers.